$FTT Token Surges 110% on FTX Repayment Rumors

FTX Exchange’s native token, $FTT, saw a massive jump in value on Sunday. Its price shot up by over 110% in just 24 hours, climbing from $1.42 to $2.99. 

This rally came as a surprise, especially as major cryptocurrencies like Bitcoin and Ethereum dipped slightly during the same period. Trading volume also exploded, rising 3653%, bringing $FTT back to its highest since January.

Rumors Spark $FTT Price Jump

The 110% surge in $FTT seems driven by speculation that FTX Exchange could soon begin repaying its creditors. Some crypto influencers claimed a $16 billion repayment process might start this week. 

These rumors sent a wave of optimism through the market, but officials quickly warned that these claims were misleading.

FTX is still going through court proceedings, with the next hearing set for October 7, 2024. 

If the court approves their reorganization plan, small creditors could begin receiving payments within 60 days. However, the repayment of larger claims might have to wait until early 2025.

Expectations vs. Reality

Official documents regarding FTX repayments paint a more cautious picture. Creditors will recover 10-25% of their lost funds, based on the value of the cryptocurrency in November 2022. 

This adds frustration, as prices were much lower back then compared to now. FTX, once one of the largest crypto exchanges, collapsed in November 2022.

This collapse resulted from a massive fraud involving the former CEO, Sam Bankman-Fried. The fallout left thousands of investors in limbo, still waiting for clarity on when, or if, they’ll ever get their money back.

Although the recent surge in $FTT’s price might signal renewed hope, the repayment process is far from certain. Traders and investors should stay cautious, as no official payments have begun yet.